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Title: Growth and returns to new products and pack varieties: the case of UK pharmaceuticals
Authors: Bennato, Anna R.
Bokhari, Farasat A.S.
Mariuzzo, Franco
Keywords: Pharmaceuticals
Product differentiation
Non-linear pricing
Issue Date: 2016
Publisher: UEA Centre for Competition Policy
Citation: BENNATO, A., BOKHARI, F. and MARIUZZO, F., 2016. Growth and returns to new products and pack varieties: the case of UK pharmaceuticals. (Centre for Competition Policy working paper ; 16-1.) Norwich: UEA Centre for Competition Policy.
Series/Report no.: Centre for Competition Policy working paper;16-1
Abstract: We use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size.
Sponsor: The authors wish to acknowledge the contribution of the ESRC who supported their research through Centre for Competition Policy funding (ref: RES-578-28-0002).
Version: Published
URI: https://dspace.lboro.ac.uk/2134/23647
Publisher Link: http://competitionpolicy.ac.uk/publications/working-papers
ISSN: 1745-9648
Appears in Collections:Research Reports (Business)

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